How to Meet Angel Investors at Pre-Seed

SDS 014: Clarifying Finding Angel Investors

Hey! thank you for reading issue 014 of Startup Definition Sunday (SDS).

SDS is the newsletter for founders, bringing you clarity one actionable tip at a time.

SDS arrives every two weeks (you guessed it) on Sundays.

In every issue you can expect:

• 1 Definition of startup jargon

• 1 actionable tip you can implement right away

• 1 article on Africa tech that you should read

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Hi - It's always such a pleasure to share each issue with you! If you missed the last issue, you can check it out here.

Before we dive into today's issue, Marge and I started something we think could be useful for founders - bi-weekly office hours to practice your 5-minute pitch.

If you missed the most recent recorded session, you can catch the recording here .

We are on a break till the start of Q3 but you can register here to be the first to know when we begin Q3 sessions.

Let's dive into today's issue.

As an angel investor, I often get asked by early-stage startups how to find angel investors to support their pre-seed round. While there is no one perfect way to find angels, there are several effective ways to get on an angel investor's radar.

In this issue, I will discuss the benefits of angel investors and provide three ways for founders to find the right angels to support their pre-seed round.

But first…

Who is an angel investor?

Angel investor: an individual who provides financial support, often in exchange for equity or convertible debt, to early-stage tech startups during their initial growth phase, usually pre-seed.

What benefits do angel investors bring?

I have been angel investing for over a year now with investments across US, UK and Africa. The biggest misconception that founders have about angel investors is that their only benefit is to provide access to funding.

While funding is the primary benefit that a founder may want from an angel investor, there are other benefits that angels can bring to the table:

• Mentorship and guidance from experienced entrepreneurs.

• Networking and connections to other investors, industry experts, and potential customers

• Validation and credibility to attract additional funding and customers.

• Long-term partnership and commitment to help navigate challenges and grow the business over time

How to Meet Angel Investors at Pre-Seed

Despite the benefits of angel investors, many founders struggle to find the right angels. Here are three effective ways to get on an angel investor's radar:

1. Direct outreach: Direct outreach by founders is a great way to get an angel investor's attention. Identify angel investors that are a fit for your solution and leverage your personal networks and forwardable blurb to reach them. My first angel investment came from direct outreach by the founder. It is not easy but it can be very effective.

2. Leverage syndicates or angel groups: Many angel investors join syndicates or angel groups (such as HoaQ Club, Angel Squad and Alumni Angel) to pool smaller checks together and invest in startups. For founders, syndicates are useful because they allow them to have just one name on their cap table as opposed to several smaller checks. Afrofounder put together this list of pre-seed investors made up of some syndicates for founders in Africa. 70% of my angel investments have been through syndicates (disclosure: I am a member of HoaQ Club, Angel Squad and Alumni Angel).

3. Attend Conferences & Startup Events: Attend local startup events, conferences, and meetups to network with other founders and investors. These events provide opportunities to meet potential investors, learn about their investment interests, and showcase your startup. I met the founder of my second UK angel investment at a conference last year. Two weeks later, I wired my check into her round. Consider creating a list of conferences and events happening in your local ecosystem to allow you to plan ahead for those events. Reach out to organizers of the events and pitch for a speaker slot on the agenda as a way to get free tickets to these events.

It is often said that angel investors are the invisible middle between launching a startup and raising your first fund from an institutional investor. Unfortunately, many founders skip angel investors in favor of investment funds. Angel investors can provide valuable benefits to early-stage startups beyond funding. Finding the right angel investor can be a game-changer for your startup. By following these three effective ways to get on an angel investor's radar, founders can increase their chances of meeting the right angel investor to support their pre-seed round.

If you have learned something valuable today, consider joining SDS so you don't miss future editions.

If you only read one thing this week, read this...

In a recent guest post for Africa: The Big Deal, I analyzed their database of fundraising announcements since 2019.

Here's why you should read it: I found that 37% of CEOs from startups in Africa that raised $1M+ in equity come from just 7% of represented universities.

While this fact may be unnerving, it further underscores the need for founders to find angel investors to fund that initial growth phase.

Founder's Corner

As an investor, I understand that it can be difficult for founders to get on angel investors' radar, especially without the right networks.

That's why I built an inbound form to allow founders to share their decks directly with me. It takes less than 5 minutes to complete. By breaking the mold and providing an alternative way for founders to connect with investors, I hope to help level the playing field.

Thank you for reading to the end of issue 014.

Until we meet again in two weeks, here's how we can stay in touch:

• 🐦 Find me on Twitter

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• 💌 Email (hit reply)

• 🚀 Sponsor SDS (Reply to this email)

Let's chat again in two weeks,

Jasiel

P.S I am revamping my newsletters referral program after some helpful feedback from readers. I need your help on this:

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